His comments about 'bullying' of an official anger Democrats.

Mar. 13, 2013

Senators have a heated exchange at the front of the Senate chamber on Wednesday. / William Petroski/The Register

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Democrats and Republicans engaged in a war of words Wednesday on the Iowa Senate floor over Gov. Terry Branstad’s defense of financial incentives offered to lure an Egyptian fertilizer company to the state.

The Republican governor angered Democrats by telling attendees at a Fort Madison town hall meeting Tuesday that Debi Durham, the state’s economic development chief, was bullied during a recent Senate committee appearance and that the state was justified in offering $50 million in tax credits with an opportunity for another $50 million to bring the plant to southeast Iowa. The project is also expected to receive an estimated $133 million in local tax abatement.

Sen. Joe Bolkcom, D-Iowa City, in a speech Wednesday on the Senate floor, offered no apologies for the Democrats’ criticism of the state’s deal with Orascom Construction Industries, which he described as “the worst economic development deal in state history.” He said the $1.4 billion fertilizer plant would have been successfully recruited to Lee County without additional state and local incentives.

Bolkcom said Iowa already had a huge advantage over Illinois — which was also trying to land the fertilizer plant — because Iowa could issue $1.2 billion in tax-exempt flood disaster bonds for the project, which will provide a $300 million savings to Cairo-based Orascom.

“Gov. Branstad still doesn’t understand what went wrong with the Orascom deal,” Bolkcom said. “That should concern each and every Iowan. Because until Gov. Branstad understands what went wrong with Orascom, we are all at risk of watching Gov. Branstad suddenly announce a new economic deal, one that will be even worse than the one we just experienced.”

Sen. Robert Hogg, D-Cedar Rapids, then accused Branstad of “revisionist history” about Durham’s recent appearance before the Senate Ways and Means Committee.

“Gov. Branstad was not at the meeting. I was at the meeting,” Hogg said, adding that Durham was never bullied and that Lee County supervisors who attended were respectfully acknowledged.

“One of our jobs is to ask people questions. If that’s the governor’s definition of bullying, we have a real problem, folks,” Hogg added.

Sen. Brad Zaun, R-Urbandale, jumped to his feet and objected to Hogg’s remarks as an inappropriate personal attack on Branstad. That prompted a contentious meeting of both Republicans and Democrats at the front of the chamber.

After a few minutes, the lawmakers returned to their desks and Senate President Pam Jochum, D-Dubuque, announced: “Senators’ remarks need to be very respectful towards another and other public officials. So I would ask senators to keep that in mind in their remarks on the Senate floor.”

Sen. Randy Feenstra, R-Hull, then rose to defend Branstad and the fertilizer plant, which is projected to save Iowa farmers an estimated $740 million annually in reduced anhydrous ammonia costs. He also praised the governor for helping an economically depressed area with a 9.1 percent unemployment rate. The project is expected to create 165 permanent jobs and 2,500 construction positions.

“Who really cares about low-income people?” Feenstra said. “I think the governor has done a great job. He is looking out for all Iowans. I truly applaud that and I am excited to see that happen.”

Tim Albrecht, Branstad’s spokesman, issued a statement later Wednesday in response to the Democrats’ criticism: “You cannot separate the jobs from the incentives. It is disingenuous to say you support the jobs but not the incentives that brought them here. That’s the way it works in the real world, outside of Johnson County.”